BET founder Robert Johnson advised CNBC on Tuesday he hopes company America will help efforts that increase Black Individuals' entry to capital wit
BET founder Robert Johnson advised CNBC on Tuesday he hopes company America will help efforts that increase Black Individuals’ entry to capital with the identical vigor as many corporations just lately did round voting entry.
Johnson’s feedback on “Squawk Field” got here someday after the entrepreneur went public with a proposal that may give preferential tax therapy to capital positive aspects on investments made in minority-owned companies. He known as on politicians in Washington to contemplate his concept, which he stated would incentivize funding in companies which have traditionally lacked it.
“In the event you imagine that voting rights is a main want of the Black neighborhood, I might argue that entry to capital is the same as or extra so,” Johnson stated. “Voting rights with out entry to capital to construct wealth is, in my view, an empty cup.”
Johnson, who based Black Leisure Tv in 1980, has been vocal in regards to the position corporations can play in addressing racial inequality within the U.S., significantly round altering hiring practices.
Whereas saying he does help the safety of voting rights for Black Individuals, Johnson stated it is also key to make sure it may well result in insurance policies being enacted that meaningfully enhance financial alternative.
The founder and chairman of funding agency RLJ Corporations has criticized Democrats and Republicans alike for not doing sufficient to handle enduring inequities for Black Individuals, even suggesting final 12 months that Black Individuals kind their very own political celebration.
“It is a glass half empty in the event you’re saying, ‘I’ll provide the proper to vote, however that vote does not translate into you with the ability to construct wealth for your loved ones; ship your children off to varsity; present retirement financial savings for you; to develop into part of the financial system within the nation as you deserve, providing you with equal alternative,'” Johnson stated Tuesday.
Johnson stated his message to enterprise leaders who criticized the latest election reform legislation in Georgia and publicized broad help for voting rights is: “Take the identical angle towards capital.”
“That is, in any case, the capitalistic, free market economic system,” stated Johnson, who turned America’s first Black billionaire in 2001 when BET’s holding firm was acquired by Viacom. “Entry to capital and entry to wealth .. is what Black Individuals want now greater than ever,” added Johnson, who’s now not on the Forbes billionaires record.
A lot of corporations introduced commitments to addressing racial inequality within the U.S. final 12 months after the homicide of George Floyd in Minneapolis sparked renewed consideration to the long-standing financial disparities.
A few of the nation’s largest banks — akin to JPMorgan Chase, Financial institution of America and Citigroup — have dedicated capital to initiatives targeted on decreasing inequality. Final month, Goldman Sachs introduced a $10 billion program to advance financial alternative for Black ladies.
Johnson additionally weighed in on the opportunity of increased taxes on firms and capital positive aspects for rich Individuals as a part of numerous legislative proposals from the Biden administration. “It comes right down to, how do you utilize the tax code to extend … financial progress total?” Johnson added, saying that elevating taxes on corporations “in a blanket vogue is just not, in my view, the easiest way.”